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The president of the Central Bank, Naci Ağbal, briefed the members of the TBMM Plan and Budget Committee and answered their questions. Expressing that the government has set an inflation target of 5 percent together with the Central Bank, Ağbal said:
* I think 5 percent. You will start by believing in something. Don’t get into a job you don’t believe in. I’m not saying if I don’t believe in anything. In other countries pinches the cause that the Republic of Turkey is enduring 1-2 percent inflation? What are we missing? We can. We have a process ahead. There are intermediate goals. The bank will make recommendations to the government. He will tell you what to do in the areas of price stability and fiscal policy. The law establishes: “The Bank is the financial and economic advisor, the financial agent and the treasurer of the Government.” He says.
* The Eleventh Development Plan is currently the highest constitutional document of economic policies. As for the Central Bank, the goals established in this document are determined goals and we will continue to work with our government within this framework.
* The reputation of the Central Bank is also very important in my opinion. A Central Bank must be respected, responsible and responsible with its decisions, works, actions and position. Independence is a very correct concept. You must make your decisions independently, but at the same time, you must constantly improve your own competencies, capabilities and skills when making decisions. In all steps towards price stability, the institutional capacity of the Central Bank must be developed sufficiently to make the right decisions.
“WE WILL CONTINUE WITH THE WAVY KURDISH REGIME”
Stating that the Central Bank is not a political institution, Ağbal continued his remarks as follows:
* The Central Bank has only one policy tool for price stability. That’s the one-week buyback rate. It is in no way an interesting corridor, LPG will not be another winding road. Because if you are going to fight for price stability, like the Central Bank, you will not use another tool when you have the right tool, you will do what the right tool requires.
* From time to time these tools may come to the fore in terms of flexibility, but flexibility has always kept us from getting it right. The right society, the economy, wants the Central Bank’s reserves to be strengthened. A correct demand, a correct demand. We have clearly described what the strategic benchmarks are in the document.
* In other words, if we are going to accumulate currencies, this will be transparent, if we want to save currencies, this will be announced in advance, within the plan and program. We will not affect currency movements in the forex market just because we will accumulate currencies. That is why we will continue with the floating exchange rate regime in monetary and exchange policy in 2021, that the floating exchange rate regime is essential within this conceptual framework within the inflation targeting regime, and within this framework, the Central Bank’s prediction on the level of the exchange rate in 2021. We have said that it has no objective. If there is a conceptual framework, if that conceptual framework is correct, it must go within it.
GOLD RESERVE
Ağbal, giving information on analytical figures, said:
* As of December 23, 2020, which was provided to me by our General Directorate of Budget and Financial Reports, the size of the analytical balance sheet assets was expressed at 839 billion TL, the balance sheet assets consist of foreign assets 717 billion TL , domestic assets TL 200 billion and valuation account minus TL 77 billion. This is entirely due to the visualization of the analytical balance.
* If an account is negative or positive, it can be expressed in a different format when making the accounts of the Central Bank balance in the analytical balance. Hence, I specifically mentioned the negative sign there. Cash loans and rediscount loans granted to the banking sector under “national assets” amount to TL 141 billion. The balance sheet liabilities consist of total foreign exchange liabilities of TL 667 billion and Central Bank money of TL 172 billion.
* Among the total liabilities in foreign currency, the banks ‘foreign currency deposits are expressed as 534 billion liras, the banks’ TL deposits shown in ‘Central Bank Money’ as 165 billion liras, the Issues of 190 billion lire and open market operations indicated by a negative sign are expressed as 216 billion lire.
* Gold reserves with data -at this time gave me are your friends in relation to the reserves of the Central Bank of Turkey to 42 billion dollars, 49.8 billion dollars of foreign exchange reserves, a total of 91.8 billion dollars. Gold reserves are $ 42 billion as of December 18, 2020, again if we take this as a note.
“THE CENTRAL BANK WILL TAKE STEPS WITHIN TRANSPARENCY”
Stating that “We are preparing to start pilot tests in cryptocurrencies in the second half of 2021” and stating that the Central Bank will take measures in the framework of transparency, Ağbal concluded his statements as follows:
* There is information on swap, for example, I hope that we will start to provide daily information on swap transactions that flow with a very late delay since the beginning of the year. Like him, I have my friends and technical units working one by one. What data do the public and decision makers need to know in the framework of these studies?
* Of these data, what can be shared within the framework of the Central Bank’s vehicle independence and the operational activities carried out by the Central Bank? Friends are currently working on them. In advance, I do not say ‘these and these are not’ because there are very technical issues, of course, my effort should be shared with the public as much as possible, because the more transparent the decision makers are with that information, it actually increases. predictability in the economy. (İHA)
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